GBP Latest News and Analysis
- UK jobs market continues to hit multi-decade unemployment lows.
- Wages data shows price pressures are not yet visible.
- Inflation data and Brexit vote will now steer GBP over the next two days.
The latest IG Client Sentiment Report shows that while retail remain long of GBPUSD – normally a contrarian negative signal – recent changes in net-long and net-short positions give GBPUSD a positive signal.
The latest UK jobs release showed the economy creating another 146,000 jobs 3m/3m in April while the unemployment rate remained at a multi-decade low of 4.2%. Even more encouraging, the claimant count turned negative 7,700 in May compared to a downwardly revised positive 28,200 (from 31,200) in April. UK wages edged a fraction lower with weekly average earnings falling to 2.5% and weekly average earnings ex-bonus down to 2.8%, both down by 0.1%.
Sterling trader’s attention will now turn to Tuesday’s UK inflation release at 08:30 GMT and the outcome of the House of Commons vote on the EU Withdrawal bill amendments. GBPUSD moved back above 1.3400 post-release but any further move higher will be tempered by upcoming data and Brexit talk.
We will be covering the UK Inflation Release Live from 08:15 GMT.
GBPUSD Four Hour Price Chart (May 10 - June 12, 2018)
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--- Written by Nick Cawley, Analyst
To contact Nick, email him at nicholas.cawley@ig.com
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